Auto and Car Insurance

what should the basic coverage be on a home insurance policy for a home valued at 190,000.00?

Public Comments

1. Dollars? Pesos? Rupees?
2. Ask an insurance agent. You home owners policy not only covers the house to rebuild it, but also the contents. So place a value on the possession that are within your house.
3. Well, it should be enough to rebuild the home. It isn't necessarily related to "market value" AT ALL. You'll need an agent to help you calculate the cost to rebuild the house. Most of the time, it's around $150 - $200 per square foot, plus built ins.
4. Insurance companies generally promote policies that consider inflation so they can automatically increase the "value" of your home on an annual basis. Their logic is that replacement costs will increase over time. They also use formulas to determine the value of "normal" possessions, which will probably surprise you until you really take into consideration what it would cost to replace all of your possessions. The cost will then vary by location and consider weather, crime, etc. If you are not getting substantial multi-line discounts from a insurance company (cars, home, life, etc.) it will pay to shop around.
5. where are you located? thats quite important.
6. I'm not sure what you mean about the "basic coverage". Are you asking how much an insurance policy should cost? What kind of coverage? Liability amounts? With that in mind, I will try to give you a little information. You ALWAYS want to purchase a full-replacement coverage policy for your home. With full replacement, the insurance company will pay the cost to replace items rather than give you a depreciated amount. For example, your roof will depreciate in value over time. If you get hail damage, full replacement coverage will pay the full cost of replacing the roof (less deductible). Other policies would only pay the depreciated value which means you could be picking up half of it or more. For liability limits, purchase the highest liability limit you can without having to go to some type of umbrella policy (often around $1,000,000). Typically, the liability amounts are relatively low. Increasing that amount is very inexpensive. I increased mine a couple years ago from $150k to $500k. The cost of my insurance went up around $25 per year. With the higher liability limit, you are insulating yourself against injury lawsuits. Many insurance companies lock the value of your home in at the time you purchase the insurance. I think you get around a 20% increase in value. After that, you have to notify the insurance company that your house is worth more which means you will be paying more for the insurance. Check with a reliable insurance agent that can shop many different insurance companies. If you go to a XYZ insurance agent, you are going to get XYZ insurance. If you go to an insurance agent that can shop your rates, you will get the best rate regardless of whether it is XYZ or ABC insurance. Hope this helps.